U.S. businesses feeling the pinch of weaker peso

 

EL PASO – Six months after the downward slide of the peso in Mexico began squeezing the pocketbooks of Juarez residents, El Paso is starting to feel the sharp impact of less goods being sold on this side of the border, officials say. “I mainly come to El Paso to buy clothes for my son, the jeans and shirts he likes are cheaper here,” said Dona Maria Guadalupe Pacheco, a resident from Ciudad Juarez, who comes to El Paso to buy the items she needs. “I cross the bridge twice a week, I shop here in downtown El Paso. Due to the high price of the dollar, I cannot spend as much money as I used to spend before, I remember spending 50 dollars, now I only spend 20 dollars.” The value of the dollar in the last year has increased about 27.33 percent against the Mexican peso, according to the United States Federal Reserve Bank.

Miguel Gómez, former president of La Red, talks to a group of members at their weekly meeting on September 30th. (Hecko Flores/Borderzine.com)

Businesses that migrated to El Paso still maintain their Juarez roots

EL PASO – The violence in Ciudad Juarez has had a huge impact in the cross-border area economy in recent years as businesses relocated here to become successful enterprises. The emigrating business owners, however, did not sever all ties to Juarez. The drug war and the climate of criminality it spawned took a huge toll on the Mexican economy, closing down businesses, chasing away clientele and most importantly stemming cash flow. This caused a large number of establishments to slash prices, cut jobs and eventually just close down. Many Mexican investors took a leap of faith and transferred their assets across the border to find a safe environment where their business would flourish.